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DHHS has 30 days to repay $22 million

State Auditor Mike Foley says Nebraska has been given 30 days to repay nearly $22 million to the federal government because of the state's troubled effort to privatize child welfare services.

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Updated: 10:39 PM CST Jan 22, 2014

DHHS has 30 days to repay $22 million

State Auditor Mike Foley says Nebraska has been given 30 days to repay nearly $22 million to the federal government because of the state's troubled effort to privatize child welfare services.

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Updated: 10:39 PM CST Jan 22, 2014

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WEBVTT NEBRASKA FACES A COSTLY DEADLINE. RETURN 22 MILLION DOLLARS IN FEDERAL FUNDS WITHIN 30 DAYS OR START PAYING A PENALTY. THE STATE USED THE MONEY TO HELP PRIVATIZE ITS FOSTER CARE SYSTEM. KETV NEWSWATCH SEVEN'S ANDREW OZAKI EXPLAINS WHY NEBRASKA HAS TO GIVE IT BACK. THE PUSH TO PRIVATIZE NEBRASKA'S FOSTER CARE SYSTEM TAKES YET ANOTHER COSTLY TURN. NOW THE FEDERAL GOVERNMENT SAYS THE STATE DID NOT PROPERLY DOCUMENT EXPENSES IN THE YEARS 2011 AND 2012 AND HAS TO RETURN 22 MILLION DOLLARS IN FEDERAL FUNDS.( Mike Foley: This all comes on the heels of a 3 million dollar repayment that they demanded of us in 2012 and we did repay that money so all told we're talking about 25 million dollars flushed down the drain because of poor management. ) STATE AUDITOR MIKE FOLEY SAYS HE POINTED OUT THE PROBLEM IN A REPORT TWO YEARS AGO ... NOW A CANDIDATE FOR GOVERNOR HE RENEWED HIS CALL FOR AN OVERHAUL OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES.( Mike Foley: The bottom line on this.HHS has got to be reformed. )( Kerry Winterer: This was not a surprise. This was expected. ) SPEAKING TO SENATORS ON THE HEALTH AND HUMAN SERVICE COMMITTEE DHHS CEO KERRY WINTERER SAYS THE PROBLEM OCCURRED BECAUSE ORGINAL LEAD AGENCIES WERE PAID IN LUMP SUM CONTRACTS. THE STATE WILL NOW GO BACK AND TRY TO GET THE RECORDS THE FEDS NEED.( Winterer: To justify those payments made that were made under those contracts.) WINTERER BELIEVES THEY WILL BE ABLE TO NEGOTIATE A LOWER SETTLEMENT.( Winterer: the money was spent properly in our estimation to provide services to the kids there's no allegation of misappropriation or anything along those lines.) BUT THE STATE AUDITOR QUESTIONS HOW SUCCESSFUL THE DEPARTMENT WILL BE IN ITS APPEAL.( Foley: This is a agency in turmoil and it costing the tax payers 10 of millions of dollars. ) IN LINCOLN, ANDREW OZAKI KETV NEWSWATCH SEVEN. D-H-H-S OFFICIALS SAY THEY SOLVED THE PROBLEM FOR NOW. THE STATE WILL PAY ALL THE BILLS UNLESS IT GET PROPER DOCUMENTATION FROM PROVIDERS TO APPLY FOR FEDERAL ASSISTANCE.

DHHS has 30 days to repay $22 million

State Auditor Mike Foley says Nebraska has been given 30 days to repay nearly $22 million to the federal government because of the state's troubled effort to privatize child welfare services.